Samsung, SK Hynix, Micron Sued in US for DRAM Price Fixing

Samsung Electronics, SK hynix and Micron have been sued by 14 individual consumers and three small businesses in a California federal court over alleged collusion to fix DRAM prices.

Plaintiffs accuse the three firms of reducing DRAM supply to drive up prices. The lawsuit, filed on June 25, claims the companies—which produce most of the world's DRAM—coordinated supply and pricing starting in 2022. Prices rose about 700 percent over the past four years, according to the plaintiffs.

They allege the firms used the transition to high-bandwidth memory as a pretext to cut DRAM output and discontinue DDR3 and DDR4 chips. The suit cites Apple's recent product price increases as the immediate trigger for the legal action.

The case is currently small in scale but seeks class-action status. The plaintiffs are represented by antitrust law firm Bathaee Dunne. The firm aims to expand the suit to represent all general consumers and businesses that purchased products containing DRAM.

Bathaee Dunne previously won a case alleging collusion in Google's digital advertising. If the court approves the class action and the plaintiffs prevail, the defendant companies would pay triple the damages.

Past US findings against Samsung and SK hynix add to the stakes. Both companies were previously found guilty of price fixing in the United States in the early 2000s. Those cases resulted in large fines and prison sentences for executives.

Industry analysts including investment bank Jefferies forecast that the lawsuit will not affect memory prices at least until the end of this year. The suit remains in its early stages in California federal court.